Economic Update: Fed Rate Hike Resets the Commercial Real Estate Outlook

SVN’s late September 2026 report highlights the Fed’s first rate hike since 2023, persistent inflation pressures, and a higher-for-longer financing environment. Commercial real estate fundamentals remain broadly stable, with improving office absorption, positive rent growth across major sectors, and uneven property price trends, while elevated borrowing costs and rising loan stress continue to weigh on the market.